Despite one solid attempt to bounce back to unchanged levels this morning, bond markets spent the day in weaker territory.  For most of the day this wasn't too offensive as the weakness was fairly well-contained.   As the close approached, an ascending trend in yields became apparent.  Treasuries and MBS both ultimately closed at the weakest levels of the day.  10yr yields incidentally matched their intraday high from last Thursday.

But therein lies a mitigating factor.  Yields ONLY made it back to recent highs.  They notably did  not embark on any new adventure into weaker territory in the 3 and a half days since first hitting 2.30.  Not only that, but as of the official 3pm close, they were only up to 2.287.  When we add in the fact that stocks were moving higher at a fairly quick pace today, that amounts to a strong defensive showing for bond markets. 

Long story short, bonds are where they want to be heading into tomorrow's FOMC.  Being on the highest end of the recent range certainly connotes some anxiety about a potential move higher, but anything is possible on FOMC days.  This one, in particular, will be especially open to short and long term interpretation.

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.0
100-05 : -0-08
FNMA 3.5
103-13 : -0-07
FNMA 4.0
106-05 : -0-05
2 YR
0.3980 : +0.0160
10 YR
2.3000 : +0.0410
30 YR
3.0730 : +0.0360
Pricing as of 10/28/14 5:42PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
4:43PM  :  ALERT ISSUED: Negative Reprice Risk Increasing as Prices Leak Lower Into Close
3:33PM  :  ALERT ISSUED: Standing Ground Against Stock Rally but Reprice Risk Remains
10:04AM  :  ALERT ISSUED: Negative Reprice Risk Increases After Consumer Confidence Beat

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "lowest BTC since Sept 2013, but yield was just slightly below expectations, so a bit of wash."
Matthew Graham  :  "RTRS - U.S. 2-YEAR NOTES BID-TO-COVER RATIO 3.11, NON-COMP BIDS $168.67 MLN"
Hugh W. Page  :  "SK, that's my aggravation. I know that"
Sung Kim  :  "you dont need proof of continuance"
Hugh W. Page  :  "When DU asks for 1099 OR Tax Returns OR Award Letter to verify pension it just drives me nuts when we ask for proof of continuance as well."
Ted Rood  :  ""Prove benefit will never change in the future, even if US goes bankrupt and world plunges into anarchy"?"
Hugh W. Page  :  "Anyone else out there get conditioned for "proof of continuance" on pensions over and above what DU asks for? Geez....drives me crazy. "